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TrueUSD faces scrutiny after key security breach unfolds

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Canadian crypto exchange Catalyx faces security breach and client asset lossCanadian crypto exchange Catalyx faces security breach and client asset loss

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In this post:

  • ChainArgos raises security concerns after discovering TEURO was deployed using a compromised TrueUSD private key.
  • TrueUSD had reported a security breach ten days before TEURO’s deployment, leading to speculation.
  • The situation is complicated by Justin Sun’s notable minting of $850 million in TUSD shortly before the breach was publicly acknowledged.

ChainArgos, a leading blockchain intelligence firm, recently highlighted concerns over the potential compromise of TrueUSD’s private keys. This revelation emerged after TEURO, a cryptocurrency contract, was found to have been deployed using one of TrueUSD’s private keys. TrueUSD, known for stablecoins such as TUSD and TGBP, significantly clarified they had no ties with TEURO.

However, just ten days before TEURO’s deployment, TrueUSD admitted to a security breach on September 18, 2023. Consequently, this chain of events points to a theory that TrueUSD might not have fully disclosed the gravity of the breach. Moreover, ChainArgos believes someone could have access to TrueUSD’s private keys.

Adding complexity to the situation is the recent surge in TUSD minting. Justin Sun minted an eye-catching $850 million TUSD just three days before the public acknowledged the security lapse. Hence, ChainArgos suggests a deeper intrusion may have been into TUSD’s reserves, specifically the associated bank accounts. This suspicion calls for a deeper probe into the matter.

A user, identified as @clickityclack5, voiced that merely having private keys can’t facilitate bank thefts. However, ChainArgos countered this viewpoint by highlighting TUSD’s unique bank connections. Additionally, they warned of the dangers if someone successfully initiated a crucial wire transfer using the compromised private keys. The implications are grave, as the intruder had the private keys and access to personal bank information and identification.

ChainArgos also sheds light on the robust KYC/AML checks that customers undergo, establishing specific minting and redemption limits. However, these safeguards could become ineffective if a malevolent force were to get hold of TrueUSD’s private keys. This vulnerability could threaten the coin’s stability and put customer funds at risk.

Further insights from Zachxbt, a blockchain expert, reinforced the report. He pointed out the similarity between the entities deploying TUSD and the TEURO contract. This overlap indicates a likely breach of the deployed private key.

Additionally, intriguing movements of TEURO tokens were observed. The entity labeled 0x465 shifted 2 million TEURO to another, 0x9132. This transaction led to the bridging of 13 ETH to Arbitrum, which was then returned to the Ethereum mainnet, eventually landing at 0x472. Moreover, 0x472 created a TrueChineseYuan contract using the official TrueAUD deployer.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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